Saturday, January 22, 2011

Melaleuca Threatens eBay Seller

There was an interesting discussion on my Facebook group last week regarding selling Melaleuca products on eBay. One seller had listed some items for a consignment client on eBay and received the following email from eBay user 2010Melaleucacorporate1 (who by the way, has zero feedback):

"This email is to let you know that your auction violates Melaleuca’s policies against selling Melaleuca products on the Internet and may violate eBay’s listing policies and various laws. We realize you may not have known about the policies, but we must ask that you please remove this listing immediately, along with any other listings of Melaleuca products you may have on eBay or any other Internet locations. We understand you may not be constantly monitoring this listing but if, for some reason, it is not removed within the hour we will need to report this to eBay and to our Policy Administration Department so that they may follow up with you and take appropriate action if needed.

As a reminder, you may be able to return your products directly to Melaleuca for a refund. Please contact Policy Administration at 208-522-0700 or reply to this email to discuss this option.

Thank you for your cooperation."

Shocked and scared, the user removed the listing and asked for help regarding if Melaleuca products could actually be sold on eBay, as there are many listings for them. Group member Lisa C. so eloquently replied,

"This method of contacting directly you was entirely inappropriate; eBay has certain requirements (VERO program) for handling such "listing legality" issues.

Self-appointed policeman contacting eBay sellers directly willy-nilly like that, demanding removal of items, can lead to very capricious and arbitrary behavior. Any manufacturer who wants to control the market could make a practice of this even if they had no legal leg to stand on. And -- how do you know the member who contacted you is who s/he claims? With zero feedback, this eBay member could be a competitor trying to intimidate other sellers.

It's one thing for a company to regulate counterfeits in the market It's quite another to try to regulate how products legitimately obtained are resold. I would relist and let your listing stand. I would also forward that (and any subsequent) e-mails to eBay and let them deal with it."

In other words, it is understood by Melaleuca reps and distributors that they may not sell their products on eBay as an agreement between that individual and Melaleuca. This is a case where Melaleuca is using bullying tactics to try and control the secondary market. Anyone can sell Melaleuca products on eBay, even Melaleuca reps if they CHOOSE to do so, of course, at the risk of being dismissed by Melaleuca. Once a person has possession of the items, they are that person's personal property and can be used, given away, or sold if that person chooses to do so. Furthermore, Melaleuca is not on eBay's prohibited items list, so anyone is free to sell them.

(Conversation shared with permission given by all participants of original discussion.)

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5 comments:

coolgadgets4u said...

I like melalucca products but do not want to be a member do not want to spend a hundred plus each month. So basic its a tough ..go. So when you buy products do you sigh a waiver how you sell them...

vk3ukf said...

This sounds a bit like the ebay vs Tiffany punch up.

Russell said...

The same thing happen to me the other day. I listed some Melaleuca and started the auction at 1.00. I receive an email from a melaleuca rep saying that I am not allowed to sell this, I am committing fraud, etc etc. These are mine, brand new, unopened. I replied and said just that and also stated that since I am not a member, I am breaking not contract. I continued with my auction. I consider it to be a bully tactic and want Ebay to know that they are contacting members and acting like "Police"

Anonymous said...

Just got this threatening letter to my inbox for selling on Ebay!!

"As a Melaleuca customer you have agreed to not do this, and your listings on the Internet constitute a breach of your customer agreement. Specifically, the Melaleuca Customer Membership Agreement states:

I agree that I will not offer Melaleuca products for sale via the Internet or other form of nationally available media. This obligation will continue even after my Customer Membership Agreement is terminated. I understand that Melaleuca shall have the right to prevent any such offers by legal action and that, to the extent permitted by law, I will be obligated to pay Melaleuca’s legal fees and costs in connection with any such legal action based upon my violation of this obligation.


Until we receive your response and resolve this matter, your account will be placed on a temporary hold pursuant to Policy No. 42 of the Melaleuca Statement of Policies & Definition of Terms. While your account remains on hold you will not be permitted to pursue normal Melaleuca business activities, including placement of orders, enrollments or distribution of reports or checks.

Melaleuca is not a litigious company, but if you refuse to stop violating our legal rights, we will have no choice but to initiate legal action in order to protect those rights. We have been successful with legal action in this area previously, and we would expect to succeed in any legal action against you.

If you wish to avoid legal action, please immediately remove the listings and contact us in writing with a commitment to never again offer Melaleuca products for sale on the Internet."

betterinformedtochangehumanity said...

I too have been harassed, by the Melaleuca Company. On ebay, I was contacted by Traci Yearsly...somehow they obtained my personal email address from Ebay and now their "corporate lawyer" Michael LeClare keeps sending me threatening emails. The company even called me AT MY HOME to "discuss the matter." I am not, nor have I ever been involved with the Melaleuca Wellness Company. I bought a large lot of products (several different brand names) at a flea market booth...and I know for a fact that the merchandise sold at that flea market booth is from a storage facility place that, instead of selling storage lockers like they do on tv, liquidates the unpaid for lockers at a flea market. I've explained the situation, in writing, several times with Melaleuca's corporate lawyer...yet, still, months of harassing emails.